Nissan - Coming Back To EV Race: The Dilemma Of Resource Allocation
Nissan faces a tough choice in the EV market, where resources are scarce and competition is fierce. Should it focus all its efforts on developing BEVs or should it diversify its portfolio of EVs to hedge against uncertainties and risks?
At a glance
Country
Japan
Industry
Automotive
Date of Establishment
1933
Revenue
US$ 79.4 billion
As of 2023
Abstract
Nissan, a leading global automotive company, finds itself at a strategic crossroads as the industry shifts towards electrification. Despite a rich history and pioneering efforts in electric vehicles (EVs), the company faces challenges stemming from recent financial setbacks and intense competition.
This case study explores Nissan's dilemma of resource allocation for its EV strategy. With limited resources, the company must decide between a focused approach to battery electric vehicles (BEVs) or a diversified strategy encompassing various EV technologies, including hybrids and fuel-cell vehicles.
Key factors influencing this decision include Nissan's financial performance, technological capabilities, market trends, and competitive landscape. The analysis delves into the potential benefits and drawbacks of each approach, considering factors such as market demand, infrastructure development, and consumer preferences. Ultimately, the case study challenges learners to evaluate Nissan's strategic options and recommend a path forward that will position the company for long-term success in the evolving automotive market.
Disclaimers:
(1) Regarding Case Study Content: This case study is based mainly on secondary data and analysis of publicly available information unless otherwise stated, and is intended solely for educational purposes. Any opinions expressed by the author(s) are designed to facilitate learning discussion and do not serve to illustrate the effectiveness of the company. Additionally, banner images and logos used in the case study are intended for visualization in an educational setting and it is not used to represent or brand the company. For any dispute regarding the content and usage of images and logos, please contact the team.
(2) Regarding University Affiliation and Titles of Authors: The university affiliation and titles of author(s) seen in the case study is based on their affiliation and title during the time of publication. It may or may not represent the current status of said author(s).